FDI enhancement in defense & up to 100% FDI in railways will boost manufacturing and reduce transportation costs: PHD Chamber

FDI enhancement in defense & up to 100% FDI in railways will boost manufacturing and reduce transportation costs: PHD Chamber

FDI enhancement in defense & up to 100% FDI in railways will boost manufacturing and reduce transportation costs: PHD Chamber

No.PR-82
August 7, 2014
New Delhi

FDI enhancement in defense & up to 100% FDI in railways will boost manufacturing and reduce transportation costs: PHD Chamber

The Union Cabinet’s decision to enhance composite cap for foreign investments in defence sector to 49% from 26% is encouraging and it will go a long way to infuse innovation and to generate employment opportunities in the defense products manufacturing processes, said Mr. Sharad Jaipuria, President, PHD Chamber of Commerce and Industry

 The move is expected to reduce dependence on defence imports and soften the burden of trade deficit in the coming times, said Mr. Jaipuria

The decision to permit FDI upto 100% in some railway operations in the country is also inspiring, he said

This would overcome the problem of deficient financial resources of the Indian railway sector which has been a major deterrent to its capacity building and operational efficiency. Initiating the high speed train projects and development of dedicated freight corridors would enable the country to speed up the transportation mechanism and reduce the costs of transportation, he added.
ENDS
Koteshwar Prasad Dobhal
Consultant (PR)